New Delhi: Shares of oil marketing companies and paint manufacturers declined for the second day in a row on Wednesday as deepening conflict in West Asia drove crude oil prices higher.

The stock of Hindustan Petroleum Corporation Ltd dropped 5.41 per cent, Bharat Petroleum Corporation Ltd tanked 4.94 per cent and Indian Oil Corporation dived 4.78 per cent on the BSE.

Brent crude, the global oil benchmark, jumped 3.08 per cent to USD 83.91 per barrel.

Paint stocks also faced selling pressure. Shares of Shalimar Paints fell by 2.60 per cent, Berger Paints went lower by 2.22 per cent, Indigo Paints slipped 1.49 per cent, Asian Paints declined 0.95 per cent, Kansai Nerolac Paints dipped 0.89 per cent and Akzo Nobel India edged lower by 0.28 per cent.

"Global risk sentiment remained fragile amid ongoing tensions in the Middle East and the closure of the Strait of Hormuz, which kept oil prices volatile. Indian equities mirrored the broader risk-off environment due to the impact of inflation and potential for higher CAD," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The 30-share BSE Sensex tumbled 1,122.66 points or 1.40 per cent to settle at 79,116.19. The 50-share NSE Nifty dived 385.20 points or 1.55 per cent to end at 24,480.50.

"Given India's heavy reliance on oil imports, sustained strength in crude prices could exert pressure on inflation and the current account, thereby keeping the market in a negative territory," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

According to Bajaj Broking, escalating conflict and a spike in crude oil prices pushed markets into a phase of heightened uncertainty.

"Persistent selling by overseas investors continues to pressure domestic markets, triggering capital outflows and dampening liquidity as well as investor sentiment," it added.

This report was published from a syndicated wire feed. Apart from the headline, the EdexLive Desk has not edited the copy.